Efeblthive at the end of august but never the less, we feel it is a challenge in termoffs getting local workforce with the local construction residence and as we understand it the city is facing similar challenges in city operated projects. In terms of corrective measures well continue to closely monitor contractor performances insureing that job request forms are submitted through sit city builds. City bill as been working with urban strategies and other organizations. They looked at conducting additional classes and they are working on increasing the employee pipeline with the industry and Community Partners and that is something that is a ongoing discussion since i have been involved last year. Finally, i just want to give you a upidate only the lbe program that is operated by the city of San Francisco. Under chapter 14 b the local Business Enterprise ordinance effective july 1 they did increase the size standards. They have not implemented a asperational goal of 40 percent on city contractwise a 20 percent subset goal and we understand having met with the director of cmd, there is a 20 percent threshold goal on contracts where if it falls below that there should be justification and that is a in change in practice of setting contract goals in the past. Well talk a little more about the change in size thresh hold on the next agenda item but i didnt to provide a update on the lbe program. In terms of summary and next steps, in summary of course the professional service is slightly lower but that fluctuation is to be expected. No particular alarm that we see there. Of course, continuing efforts to increase Small Business par tisitation and construction is a area well look at. On going out reach to the minority women and trade association and chamber of comrss encouraging networking, continuing erflts to engage local Construction Workforce of course is a ongoing effort. And really what we see as education and promotion of lbe certification with ocii no longer certifying firms we have been encouraging firms to seek certification in a particular lbe certification and will continue to do that along with of course reporting on a quarterly basis to the commissionism one thing i want to stress again, as i mentioned earlier in the presentation we are focusing on particular areas that can use improvement and will do so with particular Group Members of certain communities. With that said, that concludes my presentation. Ill be happy to answer questions. As director [inaudible] the director of city build pat [inaudible] is here along with [inaudible] and will be happy to answer any questions you may have. Thank you. Okay, first do we have any speaker cards . I have one speaker card, mr. Ace washington. Good afternoon everybody. I am puzzled here but will try to make my presentation short and direct. I have a wonderful presentation right here. Compliance specialist. As he mentioned he just came on board last year. Let me give you a upidate on what i gathered for over 20 years and up to the point where we are now. It bothers me even more to see your report. First of all let me start i had a wupderful meeting with director bohe and satisfied well move along with our supervisor london breed and trying to correct things in the Western Addition. Im not here to badger but want to upidate. We are not mentioned no where in here but a small segment when i say the Western Addition. As one of the commissioners said we are treated like the step child so i got to look up and submit what is happening. Im not here to badger just speak facts. If you continue on this journey here it will look like negligent, conspearancy or just you dont give a dam and sure none of those are what you have in mind so let me reiterate what i see in the lovely presentation. It doesnt mention the Western Addition so let ace come up here and get in your face. Im appalled and i say that. From the Western Addition we are not mentioned anywhere in these documents, it is like we are vanished off the earth. That is not right. We got to be part of that pursh, that money you are talking about and please put me being poetic it comes out that way. Would you rather me be poetic or activist . This doesabout reflect what is happening in the Western Addition and sure you will try to incorporate something to the Western Addition and put it in here because even if you submitted this to sacramento i may have togo up and talk about the real obligation. Let me go on here, these does not reflect anything from the Western Addition. Your good faith efforts or first conditioning that you give, you go uch and down fillmore people are doing [inaudible] we dont have no obligations. Go to city build, go to these other agencies. When i go to them i think that led to the report here. It will reflect there is nothing in the Western Addition that will say that anybody is monitoring or anybody give a dam n. My name is ace andime oron the case and looking forward to the agency so we can put the Western Addition on the map thank you. Are there any other members of the public who wish to make Public Comment on item 5 d . No. [inaudible] i came before you i guess about a month or 2 weeks back concerning the relationship we had on the Shipyard Site with the [inaudible] project and other situations we had that we were promised [inaudible] and they never came about. Mr. Lees report is excellent in what we brought out but it doesnt range a reflection and special relationship your staff and the developers staff have with certain general contractors. It is not reflected in these reports and how certain contractors have been black listed and discriminated against because we come down here and give you testimony as to really what is taking place. It is not reflected in the reports what all the statistics and numbers. [inaudible] what is the reflection. Even some of the people they describe as Small Business or contractors who graduated from the status of being small contractors because they overstepped the financial boundaries which makes thome a small contractor, but between the developers staff and your staff they are allowed to have a relationship with the contractor where they give them a past overlooking the smaller contractor who is trying to [inaudible] they may be able to go past the thresh hold and become a larger contractor too so it doesnt show all this discrimination of how we are being black balled and discriminated against because we want to come down here and tell you the truth and maybe hup us be able to do a better job in getting some of the contractors but we still [inaudible] Everything Else in favor of other major contractors where they get the contracts all the time and the black contractors in bay view huntersion point are still suffering. Because of my testimony before you when i was here before concerning the [inaudible] we are being discriminated against and black listed. We are not notified of bids and not invited to do bids. [inaudible] the owners staff hear about it, nothing is nob mob because they are a part of the problem, not the solution. Thank you. Thank you. My name is [inaudible] and im here to represent minority contractor squz suppliers. Im the president of Northern California chapter for National Association for minority contractors and supplies. We are members sigtory through a union and there are a lot of in the Bay View District surrounding San Francisco areas, they are certified and Small Business and some [inaudible] there is a challenge to what the grouth growth and especially with projects in the bay view, transbay, everywhere around the city opportunity to grow their business. The biggest concern is 3 things i wanted to talk about while raimened did a great job of putting out the reports, as you can see there is still a lake of par tisitation with ethnicity of all different people of color, contractors and suppliers out of the 54, only 36 Small Business is in a white owned company and the remainder 18 percent is minority. There is still a gap. As al has spoken about a couple issued being black balled in the marth place we heard from our members the sames they told our organization that lack of participation when they bid on the projects they find that the contractors come and the price is too high. Also boo doing business and sustaining a business in San Francisco is high. Comepeting Small Business outside city limit where the cost of doing business is a lot lower than San Francisco. [inaudible] to look at San FranciscoSmall Business first and if the subcontractor is biddingoon a job and the general is told the price is too high they urge them to the meet and discuss why the price is too high because there could be negotiation and collaboration between us in a general contractor because if they are just going by the low bid process, immediately they are out. This goalerize not going to be melt. If they are not going to be met these contractors that are in San Francisco will be moving out of the San Francisco market area. Well have to locate to other cities to findto be able to sustain their growth and provide jobs to the community. Second item i wanted to bring up to your attention is thatcan i get additional yes that was early. The second item is suppliers. While the Construction Contractors and supplies [inaudible] we would like to see it separated. There are many small suppliers in San Francisco. Many of them are minority owned of different ethnicity. It needs to be that the general contractors, the subcontractor usealize the sunchss in order to certified with cmd, a sploier must have a weir house with inventory. If we host inventory and pay all these overhead and not being utilized by the general contractor jz subcontractors that also includes minority contractors. We are talking about all of them. Materials should bow bought from smaller businesses, small suppliers out of the city limit. [inaudible] coming in from the outside of the city limit. That is a big challenge for us so we would like to talk more about that in the future. The third area is with the general contractor [inaudible] 2 big documents for block 53, block 54 where a contractor is not getting paid. Contractorsminority contractors could lose their union license. They cannot bid on other projects because robert [inaudible] has not paid the [inaudible] or the change orders. It is constantly back and forth blaming the developer or somebody else rather than meeting with the subcontractors and really discussing what is the key issue here. If there was a change order [inaudible] then they should haneer it and pay for the invoices due because what happens is these small contractorssome of them can lose their home because they mort gj their house and get a line of credit to sustain the growth to provide job tooz the community. If they are not able to pay the slry and union dues that is the key area they will be out of business. Crablth contractors like robertobe aushy and others that practice these types of contracting, must be looked at very strongly or for future reference should not participate on these types of project. Today i brought in 2 contractors with me Presidio Builders is one of them and astrobuilders are both here today and may share their point of view, but i also brought a couple documents ill hand out to your staff to look at it. Thank you. Thank you. Is there anybody else that would like to speak . First i want to say good afternoon to the commissioners and all the members of the board here. My name is collide miller. I have Vice President of ast Ron Development corp. We were one of the first subcontractors to work on the Hunters Point shipyard project. We started i think it was say september 2013. We worked on the project for approximately i would say 8 months working with robertobe yausy. In working for robert [inaudible] in doing the project or goal was able towe understood the Small Company here in San Francisco we are given the opportunity to grow our business, that was the goal here. We thought that was the same goal that lunor, robert [inaudible] and the city had. We found out differently. In working the project we put everything we had into make thg project work. We came in with 250 thousand dollar line of credit and line of cash to careo our weight. We didnt want anyone to give us anythingism we carried our weight for 8 weeks. We carried our people and then lunor and robert [inaudible] couldnt pay us. And then it was always this issue and that issue and aortissue. Every time it came time to get paid it was a issue about good getting paid. We sent pay roll and they are not getting us paid. They carry the pay roll until we get paid from lunor. In doing that theywe are trying to work with them scr make the project work so we can have a successful completion and in doing that they are helping us by carrying pay roll, we did our part which is carry our responsibility until we get paid. Their issue is they couldnt pay us when they were supposed to. Now they carrying the pay roll they didnt pay the federal or state taxes and weoed 90 something thousand dollars in state taxes and dont know how much federal taxes because they didnt pay. At the end of the day they put us off the project saying we didnt perform and our job iswhat we are coming here today for is for the ocii or somebody have teeth saying you cant do this. We need protection. They say sue us in cort. We are is a Small Company and barely surviving now, we are is a Small Company. How do we survive to fight these guys in court . We need you to stup in and say you cant come in and do business in San Francisco this way. We need your help. We dont need you to say, we cant help you, we need you to step up. We put everything on the line we got to show we can perform. And we did our job. We need someone to step up and say, this is government funding, you cannot do this. This thing is meant for everybody to subseed, not just you to succeed. We need your help in making this robert [inaudible] and other contractors like them make a change. I do want to make a statement on one thing about the participation that i heard and want to make sure that the participation is good to get participation, but the thing is now we got participation lets make sure the companies on the site can have a successful completion. If you dont get across the goal line nobody knows you were there, you got to be able to complete. We want to complete and dont want anyone to give us anything. We want others to come in behind us. If we dont get the opportunitywhy do you think it looks like out there in minority contractors . Because we havent been given the opportunity to complete. We want that opportunity and deserve that opportunity. We are asking you guys to help us to make sure that happens. Thank you. Thank you. I have no other speakers this is a work shop so Public Comment is closed at this moment. It is in the hand of commission for questions of staff. Commissioner singh. I just, mr. Lee. How many business go outside the city . [inaudible] from the outside to or in the city . There is no preference given for [inaudible] outside of San Francisco. To answer your question about the number of firms, i dont have that statistic but there are quite a few. We can get that number for you. I think we should get a preference from people in the city for the outsider. I like to have these people. Thank you. Commissioner bustos look, this whole program that we talk about throughout the city and not just in San Francisco, i know the city of oakland has it and many cities around the country that put programs like the sbes and mbes, lbes and it is all about fairness. It is about doing what is right and you know, i appreciate your support i mean your report and iutilize us because we know you have a tough job because you have to deal with some of these contractors and some staff in trying to get information so know you are not alone in this. I say that out front. These programs are put in place to really lift up everybody and when i was on redevelopment on that commission , i remember when we were talking to some of the developers and we requested 50 percent i would say this is a hundred percent San Francisco resources and all we are asking for is 50 percent. That is a damn good deal, right . We could be asking for 75 or match the 100 percent but we said all we want is 50. All we want is to give people in San Francisco an opportunity to work on their city, to build it and so the numbers look promising but there is more work to be done and i think we need to talk to city build. Folks from city build that are here, we need to look at how to be creative and look and think outside the box to get San Franciscoan to work in their town . That was the whole thing. I know when we talk about San Francisco base sbe and mbe and lbe, there is difference between that and long term San Francisco base sbe, mbe and lbe. Im a broken record because people see what is happening in San Francisco as another gold rush and they are coming in and setting up shop and say im a San Francisco sbe but they just got here. When we have talented, dedicated people who have been here for decades investing in the city, investing in the communities hiring local people and taking care of local talent that is what i want us to capture. Not the folks that just showed up yesterday and maybe it isnt good to say that but i dont care. I think it is importantit goes back to the fairness. These programs were put in place to be fair and help people and so i would love our agency to be the one to lead the way because in some cases the rest of the city is not getting it and us as a small nimble and in my opinion very Creative Agency i think we can do it. Know that you have us because we are passionate about it and committed about it, so i really challenge us to think outside the box on that aspect. You know, i like the idea that was brought up about separating construction versus supplies. I think maybe we should do that to break it down. I think it would add more color and life to your report because we need to know what is really happening and how it really looks on the ground. You know, going back to fairness, i think we look what we can do in the Western Addition as mr. Washington said and i definitely think and know tiffany you try today set up something withobe aushy and for some reason they were not around, i think we need to sit them down and sit down with lunar and say lookpart of the reason they get the contractss is bought of what they promise and if they are not fulfilling their promise then one, that is false advertising in my eyes think maybe we need to look at the City Attorney team to say what is going on here and what we need to have conversations with with the companies because we are talking about hundreds of millions of dollars that are at play here. This isnt small chump change, this is a lot of money, so it gives good reason to say wait a minute, you got the contracts because of what you promised and if they are not fulfilling the promise we need to revisit it and figure out something whether we pay the contractors directly we take it out of what they get and we pay because Small Businesses are living pay check to pay check and shouldnt be afraid to lose their homes. With that in mind, i would love for us to somehow put together whether it bestaff helps us compile a list of complaints that we are getting from these contractor squz we need to hold them accountable. I say we share this list of complaints with any other city that would like to see this list of complaints because i know lunar urban is headed and wants to do work in oakland and if they are not fulfilling their contract with us and not helping Small Business other people need to know that and we need to hold them accountable and with this list you can help us by reporting how knoo we are looking with the complaints, are they getting fixed because it isnt until we get on them they will listen because theyll want all these contractors want to do work in other places in the city. If they are going to lie to us then we need to let the world know they are lying to us and theyll lie to anybody to get business. I know i should shut up, but i just say, you know what, there is a lot at stack here and i think our agency has a history of being creative and trying to lead the way and i think we can do it because this is a city that prides itself in doing the right thing and that is why these programs were created in the first place, to do the right thing, make it fair and help people and go beyond just building a building but lifting a entire community up. Thank you. Commissioner mondejar yes mr. Lee, thank you for a very thorough report. My question is do you2 things, the effort that our office does oryour department does in reaching out to new minority contractors and looking at the average of what you consider a sbe and it is pretty high for a new contractor to qualify, so my question is, what out reach do you do so we can engage more minority contractors to qualify . Number 2, i would like to see if there are new contractors being brought in in your reports so we can at least say, yes a certain percentage or 2 or 1 new contractor that is given a contract or subcontracting contract. In terms of outreach we have the developers do use the databasis. They have a number of sources they use as well in terms of advertising to ethnic papers. On